Barclays Plc · LSE:BARC
Barclays — Investor Day (October 2024)
27 slides from Barclays's investor day presentation, Oct 1, 2024
Slide 1: Barclays Investment Banking Business deep dive
Barclays Investment Banking Business deep dive: 1st October 2024
Slide 2: Barclays Investment Bank today
Barclays Investment Bank today Barclays Investment Banking Business deep dive 2 Leading non-US investment bank2 At scale, focused Global Markets and Investment Banking franchises International Rest of Corporate Bank the world FICC Investment Banking Income by Fees Income by Core strengths geography1
Slide 3: Barclays Investment Bank c.50% of Group RWAs by 2026
Barclays Investment Bank c.50% of Group RWAs by 2026 Barclays Investment Banking Business deep dive 3 Investment Bank competitive and at scale Corporate & Investment Bank Investment Bank Investment Bank 2023 2023 2026 63% 58% c.50% % of Group RWA RWAs to remain broadly stable at 2023 year-end level
Slide 4: Plan to increase RWA productivity in Investment Banking
Plan to increase RWA productivity in Investment Banking Barclays Investment Banking Business deep dive 4 Global Markets 7.2 Investment Banking 5.3 3.8 Income Income 3.7 (£bn) 116 (£bn) 84 86 Average RWA Average RWA 67 (£bn) (£bn) Income/ 6.1% 6.2% Income/ Average RWA 5.4% 4.6% Average RWA 2019 2020
Slide 5: Modest cost growth due to prior investments in technology and people
Modest cost growth due to prior investments in technology and people Barclays Investment Banking Business deep dive 5 High single Income (£bn) 8.9 11.1 11.0 digit CAGR Cost: income ratio 73% 59% 70% High 50s % ~ stable RetailEfficiencies & self-funding focused Corporateinvestments and offsetting inf
Slide 6: Investment Bank financials and 2026 targets
Investment Bank financials and 2026 targets Barclays Investment Banking Business deep dive 6 Financials 2021 2022 2023 H124 2026 Targets 14% RoTE 9% 7% 11% In line with Group 11.91 Income (£bn) 11.1 11.0 6.3 High single digit CAGR 69% 70% Cost: income 59% 61% High 50s % Broadly stable RWA (£bn) 182
Slide 7: Introducing Barclays Investment Banking
Introducing Barclays Investment Banking Barclays Investment Banking Business deep dive 7 Barclays Investment Bank £11.0bn (2023 income) Investment Banking £3.8bn Global Markets £7.2bn Investment Banking Fees £2.0bn FICC £4.8bn • Advisory | Equity Capital Markets | Debt Capital Markets • Credit, Rate
Slide 8: Today's Investment Banking financials
Today’s Investment Banking financials Barclays Investment Banking Business deep dive 8 Financials 2019 2020 2021 2022 2023 H124 4.7 Income (£bn) 3.7 3.7 3.1 3.8 2.2 Income / Average RWA 5.4% 4.6% 5.6% 4.1% Fee share1 3.6% 3.6% 3.1% 3.0% 3.5% 1 Dealogic Global Banking fee share. Note 2023 Global Bank
Slide 9: Barclays Investment Banking has two complementary businesses
Barclays Investment Banking has two complementary businesses Barclays Investment Banking Business deep dive 9 Two historically separate businesses Complementary income streams Investment Banking Income (£bn) 4.7 Investment International Banking fee-based Corporate 3.7 3.7 3.8 businesses Bank • Integ
Slide 10: Barclays Investment Banking fee-based businesses
Barclays Investment Banking fee-based businesses Barclays Investment Banking Business deep dive 10 Geographic fee footprint similar to US competitors2 #6 #1 Top 5 US Top 5 EU Barclays banks banks APAC 6% 10% Global IB Fees1 UK IB Fees1 EMEA 15% 16% excl. UK 16% UK 11% 5% 34% Top 5 Top 5 7% Global Sp
Slide 11: Barclays International Corporate Bank (ICB)
Barclays International Corporate Bank (ICB) Barclays Investment Banking Business deep dive 11 International franchise supporting global treasurers Regional opportunity, particularly in Americas FY23 Income3 Number of clients4 Market size5 7% 18% c.£100bn1 Corridor business: 32% >80% largely deposit
Slide 12: Proactively addressing challenges
Proactively addressing challenges Barclays Investment Banking Business deep dive 12 1 2 Total Banking fee share2 (%) Lost Investment Banking fee share1 Over-reliance on debt products Total: -110bps Advisory 31% 39% Advisory: -130bps ECM: -30bps ECM 15% 24% 4.1 3.6 3.6 3.5 3.1 3.0 DCM 54% 38% 2019 20
Slide 13: Proactively addressing challenges
Proactively addressing challenges Barclays Investment Banking Business deep dive 13 3 4 Lack of integrated approach to clients Insufficient capital stewardship Income 3.7 3.8 (£bn) 2.2 c.30% c.25% Average 84 79 of US Investment Banking of lending client RWAs are RWAs 67 clients who have Corporate al
Slide 14: What has changed?
What has changed? Barclays Investment Banking Business deep dive 14 Assessed and repositioned the businesses in 2023 • More focused footprint Clients • Serve by aligning entire franchise • Empower and develop colleagues Talent • Invested selectively in key businesses • Clear accountability while lev
Slide 15: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays Investment Banking Business deep dive 15 > £0.7bn income growth by Simpler Treasury Coverage 2026 from management actions Greater RWA productivity Capital stewardship Better Client footprint Cost efficiency More Increase share in Higher and more
Slide 16: Simpler: unified coverage of Treasurers
Simpler: unified coverage of Treasurers Barclays Investment Banking Business deep dive 16 1 Capital productivity opportunity1 2 Geographic opportunity2 8% Income / Average RWA improves with additional products 48% 65% 70% Income / Average RWA hurdle rate >3x 92% 52% 35% 30% Lending clients with Lend
Slide 17: Simpler: unified coverage of Treasurers
Simpler: unified coverage of Treasurers Barclays Investment Banking Business deep dive 17 3 Simplify coverage 4 Early proof point – growth in US deposits1 Strategic coverage C-Suite Incl. M&A and Equity Treasury Coverage c.2x Unified Treasury Treasurer Coverage New leadership c.2x DCM / Lending / Tr
Slide 18: Better: embedding disciplined capital stewardship
Better: embedding disciplined capital stewardship Barclays Investment Banking Business deep dive 18 Underpinned by stronger process implementation & disciplined capital allocation Portfolio turns approximately every three years Advisory and ECM upside Renew / originate facilities Enhanced Lending
Slide 19: Better: stronger focus and alignment across financial sponsor ecosystem
Better: stronger focus and alignment across financial sponsor ecosystem Barclays Investment Banking Business deep dive 19 Leveraging our strong financial sponsor franchise Sponsors global fee share1 (2019-H124) Barclays Financial Sponsor Industry coverage Advisory and ECM coverage ECM 4.7 Advisory2
Slide 20: Better: strengthening industry teams to support M&A and ECM franchises
Better: strengthening industry teams to support M&A and ECM franchises Barclays Investment Banking Business deep dive 20 Actions taken Assessment of early progress % of Advisory + Fee share1 (%) FY23 H124 ECM wallet2 1 +220 bps Increased accountability at a more granular level with 40 Energy Transit
Slide 21: More Balanced: growing fee share in Advisory and ECM
More Balanced: growing fee share in Advisory and ECM Barclays Investment Banking Business deep dive 21 Advisory fee share Management actions Wallet1 ($bn) 27 30 15 2.9%2 Consistent coverage: Strengthen industry coverage and Advisory capability 3.9% 2.6% 2.4% Execute new Sponsors coverage model Drive
Slide 22: Spotlight on our UK Investment Banking franchise
Spotlight on our UK Investment Banking franchise Barclays Investment Banking Business deep dive 22 Consistent progress in recent years Integrated DCM and Corporate Bank since 2018 UK Investment Banking fee share1 (%) #1 DCM since 2019 Rank #3 #1 #2 c.70%5 of FTSE 350 banked by ICB Invested in UK
Slide 23: Investment Banking: Focused execution building on our strengths
Investment Banking: Focused execution building on our strengths Barclays Investment Banking Business deep dive 23 Strengths Key execution initiatives Early proof points in H1 2024 £2.2bn income At scale Treasury coverage +c.7% YoY Advisory and ECM 5.6% Income / Average RWA Full-service +100bps vs FY
Slide 24: Investment Banking supporting Investment Bank 2026 targets
Investment Banking supporting Investment Bank 2026 targets Barclays Investment Banking Business deep dive 24 Investment Banking 2026 Targets Investment Bank 2026 Targets Financials 2023 H123 H124 2026 Targets >£0.7bn income growth from RoTE 11% 11% In line with Group management actions 7% Income (£b
Slide 25: Q&A
Q&A
Slide 26: Share and wallet assumptions
Share and wallet assumptions Barclays Investment Banking Business deep dive 26 Assumptions 2023 2024 2025 2026 Global Markets Share %1,2 6.5 Recovery in 2024, with stability to 2026 Plan Investment Banking Fee Share %3 3.0 Rebuilding to 2019 level of c.4% (unchanged from 20th Markets wallet $111bn $
Slide 27: Disclaimer
Disclaimer Barclays UK Corporate Bank Business deep dive 27 Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an